Step 1: Define the types of organizations.
- Formal organizations are those that are officially structured, with clear hierarchies and defined roles. There is no personal favoritism in formal organizations since all activities are regulated by established rules and procedures.
- Informal organizations arise naturally and do not have official structures. They can be more prone to favoritism due to close personal relationships.
Step 2: Evaluate the options.
- In a formal organization, favoritism is minimized, as decisions are based on policies and procedures rather than personal relationships.
Step 3: Conclude.
The correct answer is formal, as it is characterized by the absence of favoritism.
Final Answer:
\[
\boxed{\text{Formal}}
\]